International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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Understanding the Impact of Business and Market Based on Collapse of Sri Lankan Economy

Author(s) Ms. SRINIDHI SRINIVAS SAYANI
Country India
Abstract Sri Lanka’s economic crisis from 2019 to 2024 represents a profound case of macro-financial instability with direct implications for businesses, investors, and policymakers. Triggered by fiscal mismanagement, unsustainable borrowing, ineffective policies, and external shocks, the crisis resulted in hyperinflation, currency depreciation, severe shortages of essential goods, and social unrest, disrupting business operations and investor confidence. This research employs a mixed-methods design, combining quantitative analysis of key economic and financial indicators including GDP, inflation, debt, and foreign reserves with qualitative assessment of governance, policy interventions, and corporate environment impacts. Two detailed case studies, the 2022 sovereign debt default and associated social unrest, highlight the business, operational, and stakeholder implications of financial instability. By analyzing IMF and World Bank data, Central Bank statistics, scholarly literature, and media reports, this study identifies structural weaknesses in fiscal, monetary, and governance frameworks that amplified business and societal risks. Recommendations focus on corporate resilience, fiscal discipline, strategic risk management, and governance reforms, providing lessons for businesses and policymakers in emerging markets.
Keywords Sri Lanka economic crisis ,Macroeconomic instability ,Sovereign debt default ,Fiscal mismanagement , Monetary policy failure, Inflation and currency depreciation, Foreign reserves depletion
Published In Volume 7, Issue 6, November-December 2025
Published On 2025-12-17
DOI https://doi.org/10.36948/ijfmr.2025.v07i06.62790

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